• The US housing market is in a nearly unprecedented place due to rising interest rates and the pandemic.
• Mortgage rates have started to retreat, but the housing market is still trying to adjust to higher rates.
• Real private residential fixed investment has fallen 20% throughout the year and now sits well below pre-pandemic levels.
• The number of units under construction is still near all-time highs, protecting employment in the housing sector.
• Home prices are still elevated, but the Case-Shiller National Home Price Index just took a dip for the first time in years.
• The homebuying market remains anything but stable, with new home sales dipping below the pre-pandemic average.
• The housing market feels more like a passenger than a driver, with movements in the labor market dominating the housing market.
Published January 28, 2023
Visit Apricitas Economics to read Joseph Politano’s original post Can The Housing Market Stabilize?
